Dubai Mercantile Exchange (DME) has approved Tokyo-headquartered Mizuho Bank to issue letters of credit (LCs) for trading on DME directly from Singapore.

Mizuho Bank is the first Japanese banking entity to be authorised to issue DME letters of credit directly from Singapore and the latest international bank to join the list of entities with permission to issue LCs directly from Singapore to guarantee deliveries of Oman Blend crude oil through the DME, said a statement.

Christopher Fix, chief executive officer of DME, said: “Delivering greater efficiencies for our clients and providing them opportunities to reliably and conveniently participate in the market is an ongoing priority for DME, and enhancing the financing environment is at the core of our efforts in this direction.

“The Asian market, which continues to drive global oil demand, remains central to DME’s strategic plans, and we are committed to creating new avenues that will allow our growing Asian customer base to take advantage of improved access to finance while effectively managing risk.”

Masahiro Goda, general manager of Global Trade Finance Division Asia Oceania Department, Mizuho, said: “We have been working closely with DME to make this financing arrangement a reality in order to provide our mutual customers a secure and uncomplicated way to trade on the Exchange, and we are delighted to see our joint efforts come to fruition.

“We look forward to working closely with DME to support the trading environment around DME’s flagship Oman crude which is gaining more and more traction as a benchmark and eliciting particularly strong interest from Asian players.” - TradeArabia News Service